Source - SMW
Shopping centre owner Intu warned that it was likely to breach the terms of its debt agreements with its lenders as rental collections slowed and its property valuations declined, owing to the Covid-19 pandemic.
 
The resulting impact on rental collections and valuations at the end of June was likely to result in breaches of covenants or material liquidity requirements, the company said.
 
The best course of action to improve liquidity would be to secure standstill-based agreements with relevant financial stakeholders across the company's structures, at both the asset and the group level, Intu said.
 
These standstill arrangements would seek relief from financial covenant testing, debt amortisation and facility maturity payments for a period through to no later than 31 December 2021.
 
'Intu believes that the best way forward is achieving stability through such a standstill until the market dislocation has stabilised and asset valuations and portfolio performance can be better understood by investors and debt providers and risk can be appropriately price,' it added. 
 
At 9:45am: (LON:INTU) Intu Properties share price was +0.19p at 4.52p



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